Building a house?

Be prepared by asking a few simple questions.

How do I get started?
Assuming that you have a building site in mind, or that your builder does, you will have to decide on the basic type of house and the price range you wish to stay in.  A meeting with your builder will lay out the square foot size for your price range.  The next step is to pick out a house plan. This may be a simple sketch, to scale, of the floor plans and a front view of the house, or you may wish to pick out a plan from a plan book and change it, to meet your needs.  Once we have your plans, we will be able to give you an estimate. At this point you will also have what the bank will require to start the loan process. Upon approval of the contract, we will then make any changes on the preliminary plans and when you are satisfied with them, we will have the final set of drawings completed.

How long will it take?
The plans generally take 2 weeks for preliminaries and 2 weeks for the final drawings.  The construction itself will take 4 to 5 months- with our part being a small portion of that time.  The entire process generally takes 6 months from conception to completion. Sometimes the builder can complete the entire process in as little as 4 months if weather and sub-contractors permit.  At other times decisions made during the pre-plan stage can take months in themselves.

Will I go over budget?
Maybe, maybe not, but it will not be due to us raising the price.  It will be due to you wanting to add to or change some things as the house is built.  Some usual changes are in the electrical maybe you want to add flood lights or recessed can lights.  Maybe plumbing, you want to upgrade the kitchen faucet or the powder room fixtures.  We will keep track of our changes with change orders before the project starts. You will need to ask your contractors how they keep track of changes you make with them.  The other way you can go over budget is through your allowance items or due to subsurface conditions on your lot ,i.e., rock and fill.

What is an allowance item?
There are typically four basic allowance items.  They are the flooring, the light fixtures, the kitchen and bath cabinetry and the appliances.  Most people do not know exactly what they will want at the beginning, so an allowance amount is included in the contract price.  The owner then shops their flooring, light fixtures, etc., with that amount set. If they spend less a credit is due.  If they spend more, an extra expense is incurred.  Any item may be handled as an allowance item if desired.  Some other item also handled as allowance would be the septic system, which can vary in cost, or the well which is always an allowance item. Note that we do not have any allowance item in our bid. We use a firm bid and if any changes occur. It will be done with a change order.

What is a subsurface condition?
Subsurface conditions are possible conditions beneath the surface of the ground that are not possible to know or not able to be calculated until excavation is underway.
Rock, or the needs for excessive amounts of fill to be hauled onto or off the properties are generally the conditions that arise.
Rock is generally a problem when it is to the point that the usual excavation equipment will not work requiring the need for specialized equipment or blasting.

What kind of windows and doors should I use?
Windows are generally going to be either aluminum clad with wood interior or vinyl.  If your interior is to be stained then wood windows are a better choice.  If you plan to have a painted interior you may want to use a vinyl window, which is less expensive.  Exterior doors will generally be insulated steel units.  Your representative can discuss the different manufacturers.

What kind of heat source should I use?
Natural gas, Straight Electric Heat, Heat Pumps, Ground Source Heat Pumps,  Propane Gas Furnaces and Solar Units are some of your choices. Your local Electric Company and Gas Company have a lot of information about each one. Also your Heat and Air Contractors can give you the pros and cons of each type.

What about financing?
Financing for a custom home is similar to any other, in that you shop for your best deal on permanent financing.  Once you have a loan commitment for your permanent loan you will need a short-term construction loan.  Many banks offer both in-house to make it easy.  Others will refer you to another lender. When you get the construction loan you may be able to get a tax break.  Then the loan will be run through an escrow company.

What is an Escrow company?
An escrow company is a third party whose job is to monitor the progress of construction and release funds as the contractor or supplier issues’ vouchers (checks) for work completed.  The escrow company assures the lender that no liens will appear on the property by collecting lien waivers from all contractors and suppliers before releasing their funds.

Who should I choose to build?
You should be comfortable with your builder and familiar with his work.  You should feel that you can communicate well with him and that his answers are honest and not misleading.  You should check references of previous jobs and jobs in progress.  Stop by jobs in progress and look at the workmanship.  A builder that has built in that city or county is preferred- due in part to his experience with the area as well as his familiarity with the local inspectors and trades people and his ability to inspect the site easily.

What about service after we move in?
The builder should have a basic one-year warranty as well as all manufacturers’ warranties.  You should keep a list of all the individual sub-contractors used on your home for future reference.

To speak with one of our custom home representatives, Mike Rellergert or
Darian Amberger, please contact BBL at 800-455-6675 or ask@bblusa.net.